Last time we looked at the benefits of forming an entity for your business, and obtaining the right kind or insurance. Today we look at several additional aspects of running your business:
Employment laws. Each state has its own employment laws. There are also some federal laws that apply to employers regardless of state. If you have employees- including yourself- you may need to register with your state. You will need to learn the different between and employee and an independent contractor, and the difference between an exempt and non-exempt employee. You may need to purchase workers compensation liability insurance. The state representatives will be able to guide you through what is necessary.
This site: http://topics.law.cornell.edu/wex/table_labor lists the state agencies. Calling the office from your state is a good place to start.
Licenses and registrations. Are you a hairdresser? In California, you need a cosmetology license. In Colorado, restaurateurs need a food service license and in New York, massage therapists need a specific license. Even if you do not fall within a specially regulated industry, you probably need a general business license, granted at the state, county, or city level. Your state Small Business Administration is a good place to start to find out this information.
Contracts. Whether you are selling a product or a service; running a brick-and-mortar storefront or a virtual one; business-to-business or directly to the consumer, you need a contract to set forth the terms and conditions of your sale. For instance:
What is your refund policy?
If there is a dispute, which state’s laws apply?
Are you clients required to resolve disputes through arbitration?
Do you require your clients to agree to a release of liability or indemnity?
All of these terms, and more, should be in your contract. Depending on the complexity of your business and the number of products and services you offer, you may need more than one contract.
This blog post is intended as a general discussion of legal principals, and should not be construed as legal representation or advice. OneCoach is not responsible for any act or consequence resulting from your reliance on anything contained in this blog. OneCoach and its attorneys do not represent you in this or any matter. You are encouraged to retain local counsel to assist you with any legal issues.